Getting a mortgage?

Zamboni

dufferlover wrote: »

Killers1 you were right We got a letter of sanction today. Unless the valuation report is off the wall it's a done deal. Thrilled.

What's next then? I'm so green when it comes to this stuff!

Sit back and watch it devalue?
Sorry I had to. Best of luck.

dufferlover

Zamboni wrote: »

Sit back and watch it devalue?
Sorry I had to. Best of luck.

Can't bate a bit of cheek! You're probably right but thankfully we see ourselves in the place long term for 15 to 20 years, so hopefully we won't still be up sh*t creek without a paddle then!

littleredspot

Glad to hear you're happy with your purchase OP. Just as a balance to Killers1 massive positivity about you situation, while it certainly does appear that you are excellent mortgage candidates, banks have an unerving ability to throw random spanners in the works.

I hope they don't, but coming from personal experience I would say (and I know it's not easy) try to not get too excited until you have the keys in your hands. (I do hope I'm wrong of course!)

dufferlover

littleredspot wrote: »

Glad to hear you're happy with your purchase OP. Just as a balance to Killers1 massive positivity about you situation, while it certainly does appear that you are excellent mortgage candidates, banks have an unerving ability to throw random spanners in the works.

I hope they don't, but coming from personal experience I would say (and I know it's not easy) try to not get too excited until you have the keys in your hands. (I do hope I'm wrong of course!)

Totally appreciate that. I've been saying this to my other half and he calls me a kill joy. While I am excited I'm trying to take the I'll beleive it when I see it approach to all this.

killers1

I wouldn't say I was being overly optimistic on this thread... I work in this business & know what I'm talking about! If you go back to the first post where the figures were laid out I said I was 100% sure that AIB would be willing to lend...

Anyway, congrats on your full sanction Dufferlover! The next steps are as follows;

1. Structural Survey - get one done & be happy with everything on the report before you sign contracts.
2. The Bank will issue a loan offer to your solicitor once the contracts arrive & your solicitor is happy with them.
3. The conditions you will need to satisfy for the Bank to bring the case from loan offer to cheque issue are as follows;
a) Direct Debit Mandate - You just need to sign an AIB DD Mandate with the account details you want the monthly repayment to come from
b)Life Cover - You need to have a policy in joint names that covers the amount & term you wish to borrow over which will repay the loan in event of death of either applicant. You should also investigate Serious Illness Cover etc for added peace of mind
c) Home Insurance - On section 12 on the Valuers Report there is a section called 'reinstatement amount'. This is what it would cost to clear the site & rebuild the house to it's current standard. This is the amount you need to have the property insured for as opposed to the purchase price. The level of contents cover will be up to you and will depend on any high risk or valuable items that you want specifically covered by the policy.

Once you have attended to the above then the solicitor sends in the legal paperwork i.e. Your signed loan acceptance, Letter of Undertaking & Cheque Request & the Bank release the funds a day or two before the pre-agreed closing date.

If you need anything else let me know!

In relation to the negative comments or things that may go wrong your situation is as follows;

The Bank have agreed to lend to you and will not withdraw that loan offer for any reason. The only thing that would prevent you from getting the keys to your house would be that 1) a problem on the structural survey that would make you decide to walk away 2) a problem with the Title to the property that your solicitor advises you not to proceed or 3) The seller pulls out of the deal (which they can do right up until THEY have signed the contracts, not just you!). These are worst case scenarios but all things being equal you are where you need to be at this stage and everything is going smoothly. If any of the above happens it is out of your control in any case and they bank would still be willing to lend you the same amount should you have to find an alternative property.

Hope this helps and if you need anything else let me know!

killers1

Sorry, extension to point 2 - meant to say that once the loan offer & contracts arrive and your solicitor is happy with them they will arrange for you to come in and sign them & pay the balance of the contract deposit.. Usually 10% of purchase price less booking fee or else 8% less booking fee if you are getting a 92% loan...

dufferlover

Killers, you're a gem. Thanks so much.
Just got the valuation report back and it's been valued at what we've offered. However it states the house only has 2 bedrooms when it has three. Granted it is a dormer and the third bedroom is downstairs and the current owners use it as a play room but it has wardrobes in it so it is a bedroom. I hope this doesn't go against us.

dufferlover

dufferlover wrote: »

Killers, you're a gem. Thanks so much.
Just got the valuation report back and it's been valued at what we've offered. However it states the house only has 2 bedrooms when it has three. Granted it is a dormer and the third bedroom is downstairs and the current owners use it as a play room but it has wardrobes in it so it is a bedroom. I hope this doesn't go against us.

Panic averted! It was a typo and the valuer is going to amend it before posting it to AIB this evening. Phew!

killers1

dufferlover wrote: »

Panic averted! It was a typo and the valuer is going to amend it before posting it to AIB this evening. Phew!

Whether it was a 2 bed or a 3 bed wouldn't have affected the Bank's decision to lend and they would still have been happy to proceed! Only would have been a problem if you told them it was a 2 or 3 bed and it turned out to be a 1 bed as they can have a different policy in relation to 1 bed properties...

killers1

littleredspot wrote: »

Glad to hear you're happy with your purchase OP. Just as a balance to Killers1 massive positivity about you situation

littleredspot - what's wrong with a bit of massive positivity??!!:)

littleredspot

killers1 wrote: »

littleredspot wrote: »

littleredspot - what's wrong with a bit of massive positivity??!!:)

I'm all for positivity killers1, but I've a good bit of experience with taking out mortgages and every time the bank threw up an unexpected problem, they also have a habit of not telling you about it until you chase them up.

For example: The last time I went to take out a mortgage the bank manager called to let me know he had the cheque in his hand, my wife and I had the afternoon booked off work to meet in the solicitors, and we got a phonecall to say that there was a problem, and the bank manager had been over-ruled. We never did get that cheque!

Another time the valuer valued the property at under what we had agreed to pay, this is standard practice if a building is in need of work.

Buying a home is an emotional rollercoaster at the best of times, and with current restrictions it seems almost common practice to refuse a seemingly valid application for no good reason. Personally I would assume the worst until I had the keys in my hand, not easy I know, but better for your mental health in the long run:)

killers1

littleredspot wrote: »

killers1 wrote: »

I'm all for positivity killers1, but I've a good bit of experience with taking out mortgages and every time the bank threw up an unexpected problem, they also have a habit of not telling you about it until you chase them up.

For example: The last time I went to take out a mortgage the bank manager called to let me know he had the cheque in his hand, my wife and I had the afternoon booked off work to meet in the solicitors, and we got a phonecall to say that there was a problem, and the bank manager had been over-ruled. We never did get that cheque!

Another time the valuer valued the property at under what we had agreed to pay, this is standard practice if a building is in need of work.

Buying a home is an emotional rollercoaster at the best of times, and with current restrictions it seems almost common practice to refuse a seemingly valid application for no good reason. Personally I would assume the worst until I had the keys in my hand, not easy I know, but better for your mental health in the long run:)

Sounds like you were messed around a few times! Regarding the valuer they tend value in current condition and value in repair i.e. on completion of the works proposed. I agree that buying a home is an emotional rollercoaster and the biggest investment a person makes. That's why it's important to have somebody qualified in that area to take you through the process and make things as easy as possible. Yes I am a mortgage broker but I learnt my trade working in a bank and I saw first hand that people walking in off the street were sitting down to speak to staff who could barely spell mortgage never mind take them through the process in an efficient manner....

dufferlover

Right, the valuation has come in at the bid we gave. It has been sent to AIB, so what now? Do I need to wait for something or is now the time to get the structural survey done?

killers1

dufferlover wrote: »

Right, the valuation has come in at the bid we gave. It has been sent to AIB, so what now? Do I need to wait for something or is now the time to get the structural survey done?

Have you given the bank the loan offer details? I.e the rate & term you have opted for? Did you also give them the salary certs they asked for? You mentioned previously they have your solicitor details. Once they have all the above the loan is put into a queue for the loan offer & legal pack to be sent out to your solicitor. This usually takes around 3/4 working days. Your solicitor will get you in to sign contracts once they receive the loan pack from AIB and the contracts from the vendors solicitor. You should have the structural survey completed and be happy with everything in the report prior to signing contracts. I sent you a PM the other day on this?

Villa05

Duffer, Would you mind posting the house (or something similar on the same street) and the price paid once the deal has gone through, I'm desperate for some price transparency

killers1

Villa05 have you an area in mind that you want a price comparison of? Send me a PM if you'd prefer...

dufferlover

Right folks, we're nearly there. Just need a favour. Our solicitor wants us to have the balance of our deposit (less the booking) fee ready to go early next week. Obviously this isn't a problem but who do we make the cheque payable to? Our solicitor or the vendors solicitor? I could ask our solicitor this but he'd charge me for the anwer!

killers1

dufferlover wrote: »

Right folks, we're nearly there. Just need a favour. Our solicitor wants us to have the balance of our deposit (less the booking) fee ready to go early next week. Obviously this isn't a problem but who do we make the cheque payable to? Our solicitor or the vendors solicitor? I could ask our solicitor this but he'd charge me for the anwer!

Vendors solicitor! And that was for free....!

dufferlover

killers1 wrote: »

Vendors solicitor! And that was for free....!

Thanks! By the way, I didn't get an PM off you. Just saw your other post there a second ago.

Our solicitor is confident he'll have us in the house by Easter Fingers crossed he can deliver on that now!

killers1

dufferlover wrote: »

Thanks! By the way, I didn't get an PM off you. Just saw your other post there a second ago.

Our solicitor is confident he'll have us in the house by Easter Fingers crossed he can deliver on that now!

Providing your solicitor is happy with the pre-contract replies and the vendor is looking to close before Easter you'll certainly be in by then. Ultimately all you can do is ensure that the Bank are ready to issue funds to your solicitor when needed and then just hope the other side still go ahead and sign the contracts!!!

Learpholl

Sorry hijack the thread a little but its a similar type question. After the contracts have been signed by both sides, on average how long does it take before you actually receive the keys? Due to sign my contract tomorrow.

killers1

Learpholl wrote: »

Sorry hijack the thread a little but its a similar type question. After the contracts have been signed by both sides, on average how long does it take before you actually receive the keys? Due to sign my contract tomorrow.

Hi Learpholl,
Unfortunately it's a bit of a 'how long is a piece of string question'... It depends on a number of things...

1. Are the vendors looking to close quickly
2. Is your solicitor still awaiting responses to any pre-contract enquiries that they need to be satisfied with before they are happy to allow you to complete
3. Is everything in place with your lender from your side i.e. Life Cover, Home Ins, DD Mandate etc.

When you go to sign the contracts tomorrow there will be a suggested closing date mentioned in the contract. This is what both sides work towards but if it suits all parties to push the date out or move it sooner it can be done once the solicitors are organised and you have satisfied the non-legal conditions of your mortgage offer ie. the insurances etc..

You should get a better idea of closing timeframe once you meet your solicitor tomorrow..

Learpholl

killers1 wrote: »

Hi Learpholl,
Unfortunately it's a bit of a 'how long is a piece of string question'... It depends on a number of things...

1. Are the vendors looking to close quickly
2. Is your solicitor still awaiting responses to any pre-contract enquiries that they need to be satisfied with before they are happy to allow you to complete
3. Is everything in place with your lender from your side i.e. Life Cover, Home Ins, DD Mandate etc.

When you go to sign the contracts tomorrow there will be a suggested closing date mentioned in the contract. This is what both sides work towards but if it suits all parties to push the date out or move it sooner it can be done once the solicitors are organised and you have satisfied the non-legal conditions of your mortgage offer ie. the insurances etc..

You should get a better idea of closing timeframe once you meet your solicitor tomorrow..

Thanks a lot Killers.

1. Yes, they are. They no longer live in the house, they live abroad now and have given their solicitor power of attorney to sign on their behalf.
2. He's received all responses to the pre-contract enquiries
3. I'm already paying for Home & Life insurance but haven't done anything with regards to a DD mandate. Is this just telling the bank when and from what account to take the money from?

I'm hoping based on your response above that we can have move in quickly since most things seem to already be in place. Thanks again.

killers1

Learpholl wrote: »

killers1 wrote: »

Hi Learpholl,
Unfortunately it's a bit of a 'how long is a piece of string question'... It depends on a number of things...

1. Are the vendors looking to close quickly
2. Is your solicitor still awaiting responses to any pre-contract enquiries that they need to be satisfied with before they are happy to allow you to complete
3. Is everything in place with your lender from your side i.e. Life Cover, Home Ins, DD Mandate etc.

When you go to sign the contracts tomorrow there will be a suggested closing date mentioned in the contract. This is what both sides work towards but if it suits all parties to push the date out or move it sooner it can be done once the solicitors are organised and you have satisfied the non-legal conditions of your mortgage offer ie. the insurances etc..

You should get a better idea of closing timeframe once you meet your solicitor tomorrow..

Thanks a lot Killers.

1. Yes, they are. They no longer live in the house, they live abroad now and have given their solicitor power of attorney to sign on their behalf.
2. He's received all responses to the pre-contract enquiries
3. I'm already paying for Home & Life insurance but haven't done anything with regards to a DD mandate. Is this just telling the bank when and from what account to take the money from?

I'm hoping based on your response above that we can have move in quickly since most things seem to already be in place. Thanks again.

No reason why you shouldn't be able to close within the next 10 days if both solicitors are happy with everything. When you go in to sign the contracts your solicitor would have received a DD mandate with the loan pack so just complete it while you're there and they can return it to the bank with the rest of their paperwork.

Learpholl

Good stuff. Will aim to close before Friday week so if both solicitors can agree to it.

killers1

Learpholl wrote: »

Good stuff. Will aim to close before Friday week so if both solicitors can agree to it.

If your solicitor posts everything back to your lender today to arrive on Monday it'll be Wed before it's checked off and then go into a queue for the funds to be released which would be around next Fri at the earliest. No reason you couldn't close the week after next sometime... Best of luck with your move!